The EU’s State Aid Modernisation – taking stock of its initial results. College of Europe Policy Brief #12.16, July 2016

Nicolaides, Phedon (2016) The EU’s State Aid Modernisation – taking stock of its initial results. College of Europe Policy Brief #12.16, July 2016. [Policy Paper]

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Abstract

Executive Summary > The State Aid Modernisation that was completed in July 2014 has established the rules that apply to public subsidies in 2014-2020. > The new rules are based on ‘common compatibility principles’, which require that aid addresses market failure, is necessary and proportional, and does not cause excessive distortion of competition. > The institutional centrepiece of the Modernisation is the new General Block Exemption Regulation (GBER) that enables Member States to grant state aid without prior notification to the European Commission. > Member States can thus avoid the administrative cost of notification, while the Commission can direct its efforts to the most serious cases. > However, the increased use of the GBER has also made state aid measures less visible.

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